Assume that in Canada the opportunity cost of producing one television set is two bushels of wheat. Assume that in the United States the opportunity cost of producing one bushel of wheat is two television sets. If these two countries specialize according to comparative advantage and then trade with each other:
A. the United States will export both televisions and wheat.
B. Canada will export both televisions and wheat.
C. Canada will export wheat and import televisions.
D. the United States will export wheat and import televisions.
Answer: C
You might also like to view...
Answer the next question(s) based on the following supply and demand schedules in units per week for a product.PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100The government's introduction of a guaranteed price floor of $50 will result in
A. a shortage of 200 units. B. an unstable market. C. a surplus of 200 units. D. no shortage or surplus.
What is a price ceiling?
What will be an ideal response?
You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis
If you presently have two cups of tea and one scone, what this the marginal rate of substitution (MRS) at this point? A) +1 B) -1 C) Zero D) Infinity
The portion of income that is spent on productive inputs, such as factories, machinery, and inventories, is called:
A. loanable funds. B. consumption spending. C. investment. D. savings.